A highly concentrated investment portfolio and heavy bets on speculative technology stocks often make Ms. Mu and her company blamed, but why are investors consistent with Ms. Mu?
Although the net worth of “Sister Wood” Cathy Wood has plummeted, her followers are still religious.
The dramatic scene happened on Wednesday, when Sister Mu’s flagship fund ARK Innovation ETF plunged 10% that day, the third-biggest drop in the fund’s history, but the fund still recorded net inflows.
The inflow of $45 million that day was relatively small compared to the $7.8 billion in volume, but for 2022, the fund’s net inflow is more than $1.5 billion, and the fund has fallen as much as 61% over the same period.
A highly concentrated investment portfolio and heavy bets on speculative technology stocks often make Ms. Mu and her company blamed, but why are investors consistent with Ms. Mu?
Bloomberg quoted Nate Geraci, president of consultancy The ETF Store, as saying that Cathy Wood’s belief in her strategy has not wavered at all, and in fact she is doubling down on her strategy. attractive.”
This is most vividly reflected in her addition to Coinbase, the largest cryptocurrency exchange in the United States. Coinbase plummeted 26% on Wednesday due to poor performance and the collapse of virtual assets. While Wall Street was collectively bearish, Sister Mu Dui was looking for dips and increased her holdings by about 860,000 shares in the week ended Thursday.
Ms. Mu Tou has long been an advocate for cryptocurrencies, and said earlier that a bottom for bitcoin and other digital assets may be coming.
The so-called homogeneity of profit and loss may be precisely because of her unwavering style and unswerving pursuit of growth companies that have gained profits from disruptive technological changes, that has won her so many loyal fans.
With the rebound of technology stocks, ARK is also regaining lost ground. The ETF rose 5.6% on Thursday and soared 12% on Friday, but Sister Mu may still have a long way to go to return to subversion. It seems that ARK needs to rise by about 260% to return to its all-time high.
Geraci told Bloomberg that because ARK sticks to its strategy, investors have a clear idea of what they’re getting, and they can use ARK as a trading vehicle for betting on growth tech stocks. Cathy Wood has held her ground amid the drastic sell-off, which should help ARK in the long run.
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